Mineral Resources entities in litigation amounting to R50m

MINERAL Resources and Energy Minister Gwede Mantashe has revealed that entities in his department are facing a slew of litigation amounting to R50.1 million.

Mantashe said the five entities are facing 23 cases, which are at various stages of litigation.

He made public the details of litigation and costs when he responded in writing to parliamentary questions from EFF MP Phiwaba Madokwe, who had said the entities were stuck in litigation that was started by people who were no longer in the department and had never been held accountable.

She enquired about the breakdown of all legal matters against the entities of the department and the cost to the taxpayer in each case.

In his response, Mantashe said the Central Energy Fund (CEF) and its subsidiaries faced eight court cases, costing the taxpayer R30 842 163.39. He also said the National Electricity Regulator of South Africa (Nersa) was facing five court cases at a cost of R16 450 000.

The Mine, Health and Safety Council was saddled with seven cases amounting to R2 282 482.62; the Nuclear Energy Corporation of South Africa (Necsa) of an amount of R352 486.14 and the South African National Energy Development Institute (Sanedi) as much as R253 998.25.

Mantashe said the CEF and the Strategic Fuel Fund (SFF) made an application for a declaratory order declaring the sale of strategic stock invalid. The amount involved in this litigation is R11 922 752.15.

He also said there was judgment pending in an R11 462 280.93 damages claim by PetroSA against Odfjell for pipeline damages.

PetroSA has also instituted liquidation proceedings against Two Oceans for failing to honour payments for products sold. This matter has cost the taxpayer R1 457 266.26.

Mantashe said the Mine, Health and Safety Council was engaged in six labour-related cases involving a cost of R1 276 006 to the taxpayer, and there was an investigation into allegations of financial misconduct at a cost of R1 006 475 to the taxpayer.

He said Necsa has been ordered to pay the legal costs of former chief legal adviser Vusi Malebana, who lodged an urgent application to set aside his suspension and stop the disciplinary proceedings in the Labour Court in August 2019.

“The bill of costs as per the Taxing Master certificate was R352 486.14, which Necsa honoured in full in January this year.”

However, Mantashe said that following the court interdict Malebana was subjected to a disciplinary hearing and eventually dismissed.

“He took the matter to the CCMA which ordered that his dismissal was procedurally and substantively unfair and awarded him six months’ compensation amounting to R679 444.86.”

Mantashe said Sanedi was opposing a labour matter. This cost R253 998.25.